The Panama Canal is the principal trade route between Central America and the world
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Development of real GDP per capita of economies in Central America
The economy of Central America is the eleventh-largest economy in Latin America, behind Brazil, Mexico, Argentina and Colombia. According to the World Bank, the nominal GDP of Central America reached 204 billion US dollar in 2010, as recovery from the crisis of 2009, where gross domestic product (GDP) suffered a decline to 3.8%.[1] The major economic sectors are agriculture and tourism, although the industrial sector has shown strong growth, mainly in Panama.
The U.S. is the main socio-commercial partner of all Central American countries. Other important socio-commercial countries in Central America are the European Union, Japan, Dominican Republic and Mexico.[2] Currently, the Central American bloc is based on a bilateral free trade agreement (FTA) with the United States known as CAFTA-DR, and another in negotiations with Peru. The Panama Canal is the connection of Central America with the rest of the world, and the main means of communication for trade with Central America, South America, United States, Europe and Asia.
The economic development of Central America is the middle level, although competitiveness is remarkable:
Guatemala: Is the largest economy in Central America and the tenth largest in Latin America, based on nominal GDP ($118,655 million)[3] and GDP purchasing power parity (PPP) of $81.51 billion (2013 data).[4] It maintains strong commercial relations mainly with the United States, Mexico, Taiwan, Dominican Republic, Germany and Korea. According to the International Monetary Fund, Guatemala has a stable economy.[5] Guatemala has one of the lowest GDP per capita in the region
Panama: Besides having the highest Human Development Index (HDI) in the region,[6] Panama is the fastest growing economy in Latin America, having grown 6.2% in 2014. [7] Panama has the highest GDP per capita in the region. Panama is recognized as the most industrial country in Central America, and the second in Latin America after Chile. It has strong business relationships and treaties with the United States, China, Colombia, Costa Rica, Japan and Singapore.
Costa Rica: Has the third-largest in the region and has more trade relations than many Central American countries, mainly with the United States, Singapore, the European Union, Mexico, Chile, China, CARICOM (Caribbean Community), among others countries. Politically, Costa Rica is the most stable country in Central America.
El Salvador: According to the World Bank, El Salvador is the fourth-largest economy in the region, and has a GDP PPP of $50,903 million.[3] The Salvadoran economy grew by 3% in 2010, after a strong contraction in 2009.[8]
Honduras: Is the second-poorest country in Central America, with 60% living in poverty according to the CIA World Factbook. In percentage, Honduras has the largest cheap labor in Central America, its economy is mainly agricultural, the main export products are rice, coffee, bananas, vegetables, and other products.[9]
Nicaragua: Is the least stable country in the region, and the second-poorest in the hemisphere after Haiti. Nicaragua has the lowest HDI in the region, and has the lowest minimum wage in Central America (USD $141).[10] Nicaragua receives financial assistance as 4 out of 10 people live on less than a dollar a day,[11] according to the United Nations Development Programme. Nicaragua is integrated into the Bolivarian Alliance for the Peoples of Our America (ALBA).
^GDP growth (annual %) World Bank Data. Retrieved: 25/07/2015.
^Relaciones Comerciales entre Centroamérica, Panamá y Japón SIECA. July 2013. Retrieved: 25/07/2015.
^ abReport for Selected Countries and Subjects International Monetary Fund.
^Guatemala Producto Interno Bruto (PIB) IndexMundi sources of the CIA The World Factbook. Retrieved: 25/07/2015.
^"FMI calificó como estable la economía de Guatemala". Archived from the original on 2013-04-26. Retrieved 2015-07-26.
^Panamá - Índice de Desarrollo Humano - IDH Retrieved: 25/07/2015.
^Economía panameña crece al 6,2% Retrieved: 25/07/2015.
^Perspectivas del FMI sobre Centroamérica Retrieved: 25/07/2015.
^CIA The World Factbook - Honduras Retrieved: 25/07/2015.
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